Borough of Sharpsburg, PA Part 7 Delinquent Tax and Municipal Claims and Liens; Attorneys' Fees and Recordkeeping Charges, Expenses and Fees

[Adopted 11-13-2000 by Ord. No. 00-9]

§ 1-701 Attorneys' fees approved.

[Amended 2-21-2013 by Ord. No. 13-05]

1. Flat fee - uncontested matters. The following schedule of attorneys' fees and services is hereby adopted and approved as reasonable attorneys' fees pursuant to Act 1 of 1996[1] (hereinafter, the "Act") for all uncontested matters, which fees shall be awarded to the Borough, its agents, counsel or assigns in each action initialed pursuant to the Act for the collection of unpaid municipal claims as defined under the Act.[2] The property owner's obligation to pay the full amount of the flat fee for each phase of each action shall accrue upon the initiation of any aspect of each phase. The full amount of each flat fee for each prior phase of any proceeding shall carry over and be due on a cumulative basis together with the flat fee for each subsequent phase.

A. Filing of municipal claim. The sum of an amount to be determined from time to time by resolution of Borough Council shall constitute reasonable attorneys' fees for a short title examination, preparation and filing of municipal claim as defined under the Act.

B. Title search. The sum of an amount to be determined from time to time by resolution of Borough Council shall constitute reasonable attorneys' fees for the title search necessary for the initiation of each proceeding and compliance with Pa.R.C.P. No. 3129.[3]

[3] Editor's Note: Rule 3129 was rescinded March 6, 1989, effective July 1, 1989; see now Rules 3129.1, 3129.2 and 3129.3.

C. Preparation and service of writ of scire facias or complaint in assumpsit as provided in the Act. The sum of an amount to be determined from time to time by resolution of Borough Council shall constitute reasonable attorneys' fees for the initiation of each proceeding, including service of process and notice pursuant to Pa.R.C.P. No. 237, plus case closeout and the settlement and discontinuance of each proceeding.

(1) Federal tax liens, judgements and mortgages. The sum of an amount to be determined from time to time by resolution of Borough Council shall constitute reasonable attorneys' fees for all matters necessary to properly notify and serve the United States with all required additional notice and the presentation of related motions to court where there are federal tax liens, federal judgements, federal mortgages or other record federal interests.

(2) Alternative service of legal pleadings. In the event that a special order of court is necessary to serve original process as well as any other pleading, notice, court order or any other document, the following amounts shall constitute reasonable attorneys' fees as follows:

(a) Investigation of defendant(s) whereabouts and preparation of affidavit of diligent search - an amount to be determined from time to time by resolution of Borough Council.

(b) Preparation and presentation of motion for alternative service through filing of proofs of publication - an amount to be determined from time to time by resolution of Borough Council.

D. Entry of judgement. The sum of an amount to be determined from time to time by resolution of Borough Council shall constitute reasonable attorneys' fees for the entry of judgment, whether by default, upon motion for judgment, upon award or verdict, or by consent.

E. Writ of execution. Sheriff's sale of property or other form of execution on any entered judgment upon complain in assumpsit. The sum of an amount to be determined from time to time by resolution of Borough Council shall constitute reasonable attorneys' fees for preparation of all documents necessary for execution upon any judgment pursuant to the Act.

F. Second sale, free and clear. The sum of an amount to be determined from time to time by resolution of Borough Council shall constitute reasonable attorneys' fees for a second sale, free and clear of all liens, claims, mortgages, charges and estates pursuant to § 7281 of the Act,[4] including preparation of necessary documents, service, court appearances, attendance at second sale and preparation of proposed Sheriff's distribution.

[4] Editor's Note: See 53 P.S. § 7281.

G. Installment payment agreement. The sum of an amount to be determined from time to time by resolution of Borough Council shall constitute reasonable attorneys' fees for preparation of any written instrument payment agreement.

[1] Editor's Note: See 53 P.S. § 7106.

[2] Editor's Note: See the Municipal Claims and Tax Liens Act, 53 P.S. § 7101 et seq.

2. Other matters - hourly rates.

A. The following schedule of attorneys' fees is hereby adopted and approved as reasonable attorneys' fees pursuant to the Act, which fees shall be awarded to the Borough, its agents, counsel or assigns as compensation in all contested matters, communications with taxpayers, lienholders, attorneys, interested parties, interested bidders, and any other person relating to the enforcement proceeding, actions in assumpsit and in all other actions, not specifically referenced in § 1-701.1 of this part undertaken in connection with the collection of a delinquent account under the Act:

(1) Attorneys. An amount to be determined from time to time by resolution of Borough Council.

(2) Paralegals. An amount to be determined from time to time by resolution of Borough Council.

(3) Law clerks. An amount to be determined from time to time by resolution of Borough Council.

B. Each shall be as recorded and charged in units of 1/10 of an hour for all time devoted to enforcement and collection. Counsel, whether duly employed or duly appointed by the Borough, its agents or assigns, shall not deviate from this fee schedule plus any authorized escalation provided below absent an ordinance amending the same. Contested matters are any matters where any defense, objection, motion, petition or appearance is entered in any phase of any proceeding by or on behalf of any defendant or other interested party.

3. Consumer price index increase. The attorneys' fees set forth in § 1-701 of this part shall be adjusted annually, to an amount equal to the fees set forth herein plus a percentage amount of the fees set forth herein equal to the percentage increase in the Consumer Price Index for all Urban Consumer, Pittsburgh-Beaver Valley (1982-84 = 100) (hereinafter the "CPI") published for July immediately prior to the adjustment date over the CPI for June 1997 CPI. The adjustment date shall be January 1 of each year, commencing January 1, 1999.

§ 1-702 Procedure.

1. Required notice. The notice required by the Act, as amended, 53 P.S. § 7106, shall be provided in accordance therewith and shall be incorporated into appropriate delinquency notice or notices sent by the Borough, its agent, counsel or assigns.

2. Fees to be accrued and claims to be filed. Fees shall accrue for all efforts in collection after the 30th day following the notice provided under § 7106 of the Act or after the 10th day of any required second notice on all accounts referred to counsel for enforcement. Fees accumulated as a result of enforced collection shall be certified by duly appointed counsel for the Borough authorized to pursue collection of municipal claims pursuant to the Act, or by counsel for the Borough's agents or assigns and, if not collected in due course with the debt as by voluntary agreement, shall be included in all municipal claims filed on behalf of the Borough or by its agents or assigns in the course of enforcement, including any municipal claim originally filed with the Prothonotary, any municipal claim filed with the Sheriff, or in any other municipal claim filed or statement provided where attorneys' fees are due.

3. There shall be added to the above amounts the reasonable out-of-pocket expenses of counsel in connection with each of these services, including costs, fees and expenses associated with the Court, Prothonotary, Sheriff or other relevant office, in addition to expert witness fees, costs and expenses and any other reasonable costs, fees or expenses related to both contested and uncontested matters.

4. The amount of fees determined as set forth above shall be added to the municipal claim in each proceeding.

§ 1-703 Recordkeeping service charges, expenses and fees approved.

The following schedule of charges, expenses and fees is hereby approved and adopted by the Borough pursuant to § 2, No. 24 and § 3 of the Act of May 16, 1923, as amended, 53 P.S. §§ 7103 and 7106, which recordkeeping services are necessary and are the direct result of each person's failure to pay municipal claims in a timely manner.

1. Schedule. The following schedule of charges, expenses and fees shall constitute reasonable and appropriate charges, expenses and fees for each indicated recordkeeping service. The charges, expenses and fees shall be added to each municipal claim and become part of the municipal claim in addition to the principal, together with all penalties, interest, costs and attorneys' fees, and shall be payable for each municipal claim before the discharge or satisfaction of any municipal claim. The below schedule of charges, expenses and fees is separate and distinct from any costs or fees imposed by the Sheriff, Prothonotary, Court or any other public office in connection with the collection of the Borough's municipal claims.

A. Assignments: $3 per lien.

B. Lien satisfactions: $5 per lien.

C. Lien revivals (i.e., S&A): $10 per lien.

D. Tax certifications (for liened delinquent real estate taxes only): $10 per year.

E. Servicing, including staffing, computers, office space, telephones, equipment, materials and postage: 5% of gross collections.

§ 1-704 Effective date and retroactivity.

This part shall take effect on the date of enactment of the ordinance which is applicable hereto and with respect to attorneys' fees pursuant to §§ 1-701 and 1-702 shall apply to municipal claims filed in 1990 and thereafter, or as otherwise required by law. In no event shall the Borough's or its assigns' right to charge and assess reasonable attorneys' fees under Act 1 of 1996 or charges, fees and expenses pursuant to §§ 7103 and 7106 of the Act be impaired by the fact any municipal claim may also include any amounts for claims filed prior to 1990. The charges, expenses and fees set forth in § 1-703 of this part relate to all unpaid municipal claims in favor of the Borough, its agents and assigns, and shall be retroactive to the date of each municipal claim.

§ 1-705 Assignment.

The Borough may assign the provisions of this part to any assignee of its municipal claims. Assignee shall have and hold all rights of the Borough to recover reasonable attorneys' fees as well as expenses, charges and fees in the amounts set forth in this part incurred in the collection of each municipal claim assigned and in all future assignments and transfers of municipal claims by the Borough. The Borough and the duly authorized agents shall retain all rights to charge reasonable attorneys' fees, expenses, charges and fees in accordance with the provisions of this part in actions commenced under the Act and for recordkeeping services for the municipal claims retained by the Borough.